Managed FTP

Managing Risk

Insurance is all about managing risk. We identify, quantify and set prices based on the calculated costs of this risk. According to common sense, the higher the perceived risk, the costlier it will be to mitigate against the potential losses.  Or is it? Many in the insurance industry get so focused on the risk management cycle for clients that we forget to pay attention to risk mitigation in our own operation. Consider this adage from an unexpected source of wisdom, the Boy Scout Fieldbook manual.

An injury that doesn’t happen needs no treatment. An emergency that doesn’t occur requires no response. An illness that doesn’t develop demands no remedy. The best way to stay safe … is to avoid getting into trouble in the first place. That requires planning, training, leadership, good judgment, and accepting responsibility—in short, risk management.

Boy Scouts of  America, Fieldbook

Managing Data

The insurance industry collects data . . . and lots of it. The collection and analysis of this data becomes the basis upon many critical decisions are made. It produces the competitive advantage to provide better policies, prices, and solutions to the market. Managing both historical and cutting edge information becomes its lifeblood. If the data is the lifeblood, the astute management and protection of this data is the infrastructure of arteries and veins in and out of the heart to all of the appendages of the body that need the results of this data compilation.

Then this sensitive and private information is disseminated to various internal and external associates, customers, partners and collaborators. It is distributed through the most open network in the history of the world. The Internet. With this combination, what is the risk of a data breach? What are the costs of compromised data? What can be done to mitigate any potential losses? Any underwriter would tell a client that the risk is very high.

Managed FTP

Back to the analogy of the lifeblood of the business. If the heart is the data center, then the arteries and veins are the methods of moving that data to and from your business partners.  Securing your data center is a common sense practice that any IT professional will put in place. Many do not, however, consider the significant risk in not securing the data transmission.  Many businesses overlook the critical aspect of securing the data in transit, in spite of seeing and hearing in the media about the many data breaches worldwide. This has become such a concern to the consumer, that in spite of most states having passed legislation requiring the protection of “data in motion” it has now become a Federal legislative concern.

The practice of managing FTP transactions is essential to mitigating the risks of data loss. The costs of implementing Managed FTP solutions are very minimal and provide tremendous flexibility in working with the requirements of all the various types of business partners as well as government regulations.  It makes extremely good sense to mitigate risk with a minimal cost of implementing a simple solution that protects the life blood of any business. Especially one based on risk management.